Competing Industrial Standards and the Impact of Trade Liberalization
نویسندگان
چکیده
The main purpose of this study is to illustrate, with simple trade theory, the relationship between competing industrial standards and trade liberalization. We assume that there are two competing industrial standards in an international context, each of which consists of di¤erentiated products. A product can be used only in combination with other products based on the same industrial standard. We examine the impact of trade liberalization (i.e., a decline in trade costs) on consumerschoice of a standard. It will be shown that the degree Graduate School of Economics, Kobe University, Japan, e-mail: [email protected] yGraduate School of Economics, Kobe University, Japan
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